A record number of containerships have been scrapped this year as owners counter overcapacity and rock-bottom freight rates.

So far this year 147 vessels, totaling 507 000 TEUs of capacity, have been sent to the shipbreakers compared to 185 000 TEUs last year, new data from Braemar ACM shows.

This year’s total beats the record 427 000 TEUs scrapped in 2013, as owners turn to shipbreakers to rid themselves of excess tonnage despite rock bottom steel prices.

Braemar expects 700 000 TEUs of capacity to be added this year. And with between five and six per cent of the global fleet idle the industry was in a very difficult place, it added. 

It also reported that it was likely the industry would see consolidation next year as larger players took advantage of their size over the smaller lines.

Source: http://www.ftwonline.co.za/